Article Image
IPFS News Link • Housing

Homeowners to Sharecroppers: MERS Lobbyists Descend Like Locust

This is a serious State's Rights issue. That is, it is a matter of long-settled law that land titles and similar are a state function. To usurp this authority of the states would be an inherent violation of the separation of state and federal powers and is repugnant to the Constitution. Such an act is therefore no law at all, and an attempt to enforce a law that is facially void would be worthy of the strongest response - assuming it succeeds through to the Supreme Court (and it almost certainly would get there toot-sweet.) But none of this bears on the true underlying problem: A so-called assignee of a promissory note, who holds the real interest, cannot grant to MERS rights they do not hold. If the notes were not transferred into the trusts as required by the Pooling and Servicing Agreement, with said PSA being a private contract that amends and in fact requires stricter conformance with procedure than the UCC, then the "Trust" holds nothing and thus cannot grant to MERS the right to do anything! Notice how few people are talking about the real underlying issue? There are a few - Mr. Garfield being one, I being another, Yves being a third and, I might add, Arthur Levitin. This is where the attention has to be focused - by Congress, by the OCC, and by everyone else looking into this matter. Before we can reach into the propriety of what MERS is doing, we first must establish that the alleged Trust which gives MERS "nominee" status actually has rights it is legally able to delegate. The evidence currently available to us strongly suggest that the Trusts in point of fact have no such rights, as the PSA's requirements for actual transfers into the trust, along with the ministerial requirements of both the REMIC sections of the IRS code and NY Trust Law, were not complied with. Once again I ask: If all these notes were actually endorsed over as required and tendered into the trusts at the time of the establishment of the trust, as is required by both the PSA and REMIC rules, why is it that neither I or anyone else that I'm aware of has actually seen any properly-conveyed notes? IF THEY EXIST, WHERE ARE THEY AND WHY DO THE SERVICERS CONTINUALLY REFUSE TO PRODUCE THEM?